The scheme, which should be launched next year, is expected to give a mixture of loan and grant funding worth between £1m and £2m to a group of between 100 and 150 neighbourhoods over a 10-year period.

The funding schemes will be developed and administered by local people.

Alison Seabrooke, the chief executive of the CDF, said in a statement: "This is fantastic news for CDF and our consortium partners. We have advocated for long-term programmes that don’t just operate around funding cycles. The Big Local Trust gives us this opportunity.

"We are focused on delivering strategic, lasting change that fosters ambition and entrepreneurial spirit. Our innovative investment model will ensure a legacy of change for communities that will be supported well beyond the 10 years of the programme."